January 31, 2019
The Central KYC Records Registry was set up in 2015 for storing, safeguarding, and retrieving electronic copies of KYC records obtained by banks and financial institutions from their clients was thought to be a vital catalyst in facilitating swifter onboarding of clients for the financial services industry. However, four years after the project was set up, the promise has not translated into reality owing to several bottlenecks in design and process. This includes, saliently, incorrect price structure choice, a less than 100% digital process, and the granularity and rigidity of submission rules for reporting entities.
Reorienting the design and process of the CKYC infrastructure is critical to financial inclusion and efficient delivery of financial services. Accordingly, this article will deep-dive into the issues that inhibit the operations of the CKYC registry; it will round up the discussion with two proposals for reforming the (price) structure and design that may facilitate swifter compliance with compliance processes.
1. Wrong Price Structure
At present, CKYC charges banks/FIs to upload ( ...